Open: London Session | Forex, Metals, Oil, Agriculture July 16, 2021

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Currencies

The US dollar index, which measures the greenback against a basket of currencies, was flat at 92.604 on Friday and up 0.5 per cent for the week. The yen last bought 109.98 per dollar and 129.86 per euro. It has fallen 0.9 per cent on the dollar this week to $0.7423 and sits at a more than five-month low on the kiwi. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 per cent down at 92.56.
“In foreign exchange, major currencies were little changed on the day, but the dollar headed for its best weekly gain in about a month. The Indian rupee opened flat against the US dollar this Friday as investors await fresh triggers, Reliance Securities said in a research note. The United States Dollar Index (DXY) fell 0.25%, while the VIX increased some (+0.31%) on the week. “Clearly the US dollar has got some power behind it, and I think that’s holding back all the majors,” said Westpac strategist Imre Speizer.
The risk-sensitive Australian dollar has also been a victim of the cautious mood, and of the lockdown of Melbourne and Sydney. The euro stood at $1.1808, not far above the three-month low of $1.1772 it tested during the week.

Oil

However, not all commodities are seeing declines, between high demand for travel and failed talks over OPEC+ production policy, WTI Crude has been trading above $70 per barrel. Global oil benchmark Brent crude futures was trading unchanged at $73.47 per barrel. Brent futures traded at $73.54 per barrel.

United States

Dow Jones Average edges up 0.15 per cent, S&P 500 down 0.33 per cent and Nasdaq Composite slides 0.70 per cent. Notice that the professional economists surveyed by the Wall Street Journal in early July expect a substantially lower inflation rate than consumers. A lot of coverage of how the NY Fed’s survey of consumers’ inflation expectations had moved substantially (e.g. ‘NAME OF THE GAME’Energy and technology stocks led the decline on Wall Street, with defensive consumer staples and utilities the only two of 11S&P 500 sectors to gain.
The DJIA (+0.72%) and S&P 500 (+0.37%) both recorded positive weekly performances, while the NASDAQ ended the week in the red (-0.14%). The Russell 2000 (+2.17%), DJIA (+1.30%), S&P 500 (+1.13%), and NASDAQ (+0.98%) all rebounded from the prior session—marking new all-time highs for the DJIA, S&P 500, and NASDAQ. The NASDAQ (-0.72%) ended its five-day run. “You can’t fight the Fed when there is such a massive easing.
Source: BLS, NY Fed, and author’s calculations. Source: BLS, NY Fed, WSJ July survey.

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